In the United States, the number of credit card defaults increased by 50% in 2024 compared to the previous year, UNN writes with reference to Fox Businesses.
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In the first nine months of 2024, lenders in the United States wrote off more than $46 billion in seriously delinquent credit card loans, the Financial Times reports, citing data analyzed by BankRegData. This is 50% more than in the first three quarters of 2023, and the highest figure since 2010.
"High-income households are fine, but the bottom third of U.S. consumers are depleted," Mark Zandi, head of Moody's Analytics, told the FT. "Their savings rate is now zero.
Last month, the Federal Reserve reported that American credit card debt hit a record high in September, rising to $1.17 trillion in the third quarter. This was the highest level in the history of the Fed's data, dating back to 2003.
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According to the report, total household debt also climbed to a new high of $17.94 trillion, including mortgage balances ($12.59 trillion), car loans ($1.64 trillion), and student loans ($1.61 trillion).
The researchers note that they are seeing a rapid increase in the number of overdue payments, especially for credit cards and car loans. And this is a cause for concern.
However, they also note that the increase in payments made by consumers on credit cards and car loans is partly due to inflation and higher interest rates.